Technically Natural Gas market is under long liquidation as market has witnessed drop in open interest by 1.07% to settled at 14993 while prices down 2.5 rupees.
Now MCX Natural Gas is getting support at 125.2 and below same could see a test of 122.4 levels, and resistance is now likely to be seen at 131.3, a move above could see prices testing 134.6.
Natural Gas yesterday settled down by 1.92% at 127.9 as concerns about another lockdown due to surging coronavirus infections clouded demand outlook.
Natural gas prices have exploded to the upside perhaps in reaction to the bankruptcy filing of Chesapeake Energy, the largest fracking company in the United States.
Upper high pressure will stretch from Texas to the Great Lakes and across the southern US with very warm to hot highs of upper 80s to 100s, hottest Southwest deserts.
Cooler exceptions will occur over the Northwest and New England as weather systems stall with showers and highs of 60s and 70s for locally light demand.
The Fourth of July weekend will remain very warm to hot over most of the US with highs of upper-80s to 100s besides the far northwest and northeast US.
Heavy showers are likely over the Southeast but very warm & humid. EIA weekly nat gas storage report printed a build of +120 Bcf, much larger than market expectations of +105-110 Bcf and much larger than the 5-year average of +73 Bcf.
This increased surpluses to +466 Bcf and pushed supplies to over 3 Tcf. Next week’s build will be much smaller than this week due to hotter conditions across many US regions.
--Natural Gas trading range for the day is 122.4-134.6.
--Natural Gas snapped a three-session gaining streak as concerns about another lockdown due to surging coronavirus infections clouded demand outlook.
--Refinitiv said production in the Lower 48 U.S. states averaged 87.8 billion cubic feet per day (bcfd) in June, down from a 16-month low of 88.2 bcfd in May.
--EIA weekly nat gas storage report printed a build of +120 Bcf, much larger than market expectations of +105-110 Bcf.
Courtesy: Kedia Commodities